Inquiry told Connect PNG needs K100m monthly to pay contractors

Members of the Public Accounts Committee during day one of the inquiry into the Government’s Connect PNG program in Port Moresby on Monday (Image: PNG Parliament0

The Public Accounts Committee Inquiry into the Government’s Connect PNG Program has heard that about K100 million is required each month to pay contractors across the program before work can properly begin.

On Day Two of the inquiry on Tuesday, Works Secretary Gibson Holemba told the committee that although large sums are needed, only about K20 million to K30 million is actually warranted each month, causing delays in contractor payments.

Connect PNG is a 20-year national road program aimed at linking rural areas to major urban centres. The program is expected to spend up to K20 billion over its lifetime, with an annual allocation of K1 billion.

However, Secretary Holemba revealed that between 2022 and 2025, only about half of the annual funding allocation has been released.

Works and Highways Secretary, Gibson Holemba, at the PAC inquiry on Monday (Image: PNG Parliament)

The inquiry also heard that the Connect PNG program is operating without a dedicated trust fund, which places it in breach of existing laws.

Secretary Holemba defended the program, explaining that while K1 billion is allocated each year, the full amount is not released to his department.

Deputy Committee Chair Keith Iduhu questioned whether the K1 billion program should continue, given other national priorities such as education, health, and law and order.

In response, Secretary Holemba maintained that Connect PNG is a good program and should continue.

The Public Accounts Committee Inquiry ended on Tuesday.